Four ways you can use a secured loan

What is a secured loan?

secured loan, also known as a homeowner loan, is a loan that is secured against your property. This means that you’re able to borrow larger amounts of money, usually at lower rates. For example, a homeowner loan usually allows you to borrow over £20,000 to purchase anything from a car to home improvements. Secured loans are becoming increasingly popular, particularly for those who own their own home and may be struggling with a bad credit rating.

If you have equity in your home and want to borrow upwards of £20,000, then a secured loan could be right for you. The amount you borrow, the term and the interest rate all depend upon the equity you have in your property, your credit history and your personal circumstances.

What can secured loans be used for?

A secured loan can be used for anything you like. The only difference between a secured and an unsecured loan is that a secured loan is secured against your property. This usually means that you can borrow more at a lower rate. A secured loan is ideal for larger-scale projects such as home improvements, renovations or debt consolidation. You can also use a secured loan for purchasing a new property or for early release from a mortgage.

Debt consolidation 

A secured loan can be used to refresh your financial future through debt consolidation, lowering the overall amount of interest you pay on that debt.

When taking out a loan to consolidate debt, it’s important to understand the risks you’re taking when you take out a secured loan.

Home improvements

A secured loan, also known as a homeowner loan, may be the right option for you if you’re looking to build an extension, convert a loft or upgrade your home. Your home may need:

  • Urgent repairs or renovations such as a new roof or a central heating replacement.
  • More living space, such as a conservatory, utility room or loft conversion.
  • Replacing a kitchen or bathroom.
  • Increase the value of your home before you sell.

It’s important to be realistic when thinking about making home improvements so we’ve put together a guide, including the importance of doing your research and how to apply.

Buying additional properties

Whether you’re looking to buy a second home or purchase a buy-to-let, a secured loan may be a good option when investing in another property.

There are a number of fees involved when taking out a secured loan to purchase an additional property, so ensuring it’s something you can afford before you go ahead is really important.

At Cornerstone, we get to know our clients and their requirements to find the best residential or commercial deal.

Poor credit considered

If you struggle to get accepted for a personal loan and you’re a homeowner, a secured loan could be a good alternative.

Thanks to the added security of your home, some lenders consider other factors than simply your credit score.

Our dedicated team have a wealth of experience in secured loans and can help you find the right loan that suits your needs. Please give us a call on 02921 660 550 to discuss your requirements or request a call back.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.

Request a call back

  • Hidden